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IMPROVED access to Liquefied Natural Gas (LNG) refuelling stations in regional Victoria moved a step closer thanks to an agreement between Kleenheat Gas' EVOL LNG and the Victorian Government.

A $2.5 million Regional Development Victoria (RDV) grant will support the construction of five new stations, starting in Wodonga.

Speaking at EVOL LNG's launch of a new dual fuel diesel-LNG system for heavy duty vehicles, Minister for Ports Denis Napthine pledged support for the project. He said current LNG infrastructure for commercial vehicles in Victoria was limited. "We need to establish a statewide network that will eventually lead to a greater investment in LNG vehicles and refuelling infrastructure," he said.

"As a transport fuel, LNG provides us with the opportunity to significantly reduce particulate, CO2 and nitrogen oxide emissions, compared with traditional transport fuels. LNG is also a native fuel source and typically fares better in price to diesel fuel."

Kleenheat Gas general manager Graham Smith said the company was delighted at the support.

"There are many benefits to using LNG as a transport fuel but a hindrance to greater uptake of the technology has been a lack of refuelling infrastructure. This support is well timed, as it coincides with our launch of the V5000HD dual fuel conversion, which addresses customers' other concerns about flexible, reliable and affordable engine conversion technology," he said.